State BDB has granted another loan to Sparky Eltos A new credit amounting to EUR 7.5 million has been granted to the manufacturer of power tools Sparky Eltos by the Bulgarian Development Bank. The loan is intended to “recharge” the working capital and is another loan that the company receives from the state financial institution. Sparky Eltos has long been operating on a loss, its profit was recorded in 2008 (a positive financial result of BGN 9.8 million). Submitted documents in the Commercial Register made it clear that the credit is for a short term – with a maturity date December 31, 2017. In addition to Sparky Eltos’ credit by BDB, the company will guarantee two loans from First Investment Bank – EUR 1 million for Sparky Eltos and EUR 2 million for the subsidiary Sparky Trading also maturing by the end of 2017.
Source: Capital (09.01.2017)

Bulgarian Fibank's 2016 non-cons net profit soars on lower interest expenses, impairments Bulgaria's First Investment Bank (Fibank) [BUL:5F4] said on Monday its non-consolidated net profit jumped to 90.1 million levs ($49.1 million/46 million euro) in 2016, from 12.5 million levs a year earlier. The bank’s interest expenses fell to 118.7 million levs in 2016, compared to 218.3 million levs in 2015, Fibank said in an annual financial report filed with the Sofia bourse. Fibank’s net interest income rose to 307.6 million levs in 2016, from 252.4 million levs a year earlier. Net fee and commission income increased to 88.5 million levs in 2016, compared to 81.5 million levs in 2015. Administrative expenses rose to 185.1 million levs in 2016, from 172.5 million levs, while impairments fell to 154.8 million levs, from 327.4 million levs. The bank’s total assets rose to 8.85 billion levs at the end of 2016, from 8.68 million levs at end-2015. Fibank shares closed 2.37% lower at 3.7 levs, in a turnover of 3,180 units on the Bulgarian Stock Exchange on Monday.
Source: Monitor (01.02.2017)

Bulgarian banks' net profit grows in 2016 The combined net profit of Bulgarian banks rose to 1.26 billion levs ($690.9 million/655 million euro) in 2016 from 898.4 million levs in 2015, according to central bank data. The banks' combined interest income dropped to 3.3 billion levs in 2016, which compares to 3.65 billion levs in 2015, figures posted on the website of the Bulgarian National Bank show. Fee and commission income totalled 1 billion levs last year, the same amount as in 2015. Total interest expenses in the review period dropped to 510.7 million levs, from 879.7 million levs in 2015. The banking sector's total net operating revenue in 2016 edged down to 4.1 billion levs, from 4.2 billion levs in 2015. The banks' total assets increased to 92 billion levs at the end of December, compared to 87.5 billion levs a year earlier. A total of 22 banks and five branches of foreign banks operated in Bulgaria as of end-December 2016.
Source: Capital (02.02.2017)

Veliko Tarnovo-based company for the production of towel products Aglika Trade was chosen for Company of 2016 in the prestigious competition conducted by First Investment Bank. The company is not a customer of the bank, but mainly relies on equity, loans from two other banks and almost no resources from the EU operational programs. In 2016, the company has made successful investments in production facilities and has expanded its product range. The company has built new 70 acres of working space, at its two factories in Tvarditsa. New jobs continue to be revealed and will reach 550 positions. The first plant has a capacity of 200 tons per month. The second plant produces digitally bed linen, the capacity is 30,000 meters per day, but it is also an achievement of very few plants in the world.
Source: Borba - Veliko Tarnovo (06.02.2017)

Rousse-based Sparky will guarantee another loan to a related company Another loan for the companies owned by Rousse-based Sparky shall be granted by the state Bulgarian Development Bank, became clear from the notice announcing the extraordinary general meeting of the company in late March. At the extraordinary general meeting, shareholders are expected to approve the provision of collateral in the form of a contract for a special pledge of the business enterprise. With its help Sparky Trading (owned by Sparky Eltos, which is 69.46% by the major shareholder in Sparky – Sparky Group) will receive a EUR 2 million loan for working capital from the BDB. According to the latest audited report (2015) Sparky’s assets amounted to BGN 34.8 million and the value of the collateral is BGN 2.841 million, i.e. just over 8% of assets. At the end of last year, Sparky became a guarantor for the loan of Sparky Eltos worth of EUR 7.5 million from the BDB. Sparky guaranteed another two smaller loans from First Investment Bank – EUR 1 million for Sparky Eltos and EUR 2 million for Sparky Trading. All are with maturity by the end of 2017. In March 2015 Sparky Eltos signed a syndicated loan with BDB and Russia-based International Investment Bank for a total of EUR 10 million.
Source: Capital (07.03.2017)

Bulgarian Fibank’s 2016 cons net profit soars on higher income, lower impairments Bulgaria's First Investment Bank (Fibank) [BUL:5F4] said its consolidated net profit jumped to 95.7 million levs ($52 million/49 million euro) in 2016, from 17.8 million levs in 2015. Fibank’s net interest income rose to 319.2 million levs in 2016, compared to 263.5 million levs a year earlier, Fibank said in its 2016 annual financial report filed with the Sofia bourse last week. Net fee and commission income increased to 91.5 million levs, from 84.3 million levs in 2015. Administrative expenses rose to 192.1 million levs in 2016, from 180.8 million levs, while impairments fell to 156.1 million levs, from 329.1 million levs. The bank’s total assets increased to 9.09 billion levs at the end of 2016, from 8.88 million levs at end-2015. Fibank shares traded 1.81% higher at 3.93 levs as at 10:30 CET on Monday.
Source: money.bg (07.03.2017)

Max Telecom is trying to sell itself to Bulsatcom The fourth Bulgarian mobile operator Max Telecom has been in dire financial situation for months and in an attempt of salvation is in talks to sell itself to Bulsatcom. However, a deal is unlikely to come, judging by the responses of Bulsatcom’s manager and other sources from the market. In recent months, the telecom closed its offices in Bulgaria, the employees have not received their salaries for months, the voice service Voicer does not work and internet service in many cities is interrupted or of very poor quality. Finding a partner or buyer seems like the only chance for the survival of Max Telecom. The constantly growing loan from First Investment Bank is not helping as well. Owners of the operator are Daniel Kupsin with minimal direct stake and MTV Management with over 99% of the capital. The latter company is owned by the Luxembourg-registered offshore company LuxTech Capital with a capital of EUR 43.4 mln, as its management includes Kupsin himself, who acquired the operator in 2013. Bulsatcom confirmed an invitation for a deal, but do not guarantee conclusion.
Source: Capital (16.03.2017)

The management of the First Investment Bank will discuss attracting strategic partners First Investment Bank (FIB) reported a profit before tax and impairments amounting to BGN 255 million, and after them – BGN 90.2 million for 2016. During the year the bank has set aside provisions totaling to BGN 155 million. Fibank has recorded a growth in assets from 2% to BGN 8.9 billion, which ranks it in third place in the Bulgarian banking system after Unicredit Bulbank and DSK. The capital adequacy of the bank at December 31, 2016 was 15.41%, the ratio of income and expenses amounted to 42.04% and return on equity was 11.17%. At the meeting of shareholders questions about attracting a strategic partner were raised, which the Bank's management will discuss at the next meeting.
Source: Capital (27.03.2017)

Net 1 has a new owner. Ten years after the founding, Stefan Voinov sold his company for BGM 5000 to the newly established ASME. The symbolic price does not seem abnormal given the financial situation of the company that is literally at artificial respiration - years of losses are covered with more and more loans from First Investment Bank, which reach EUR 34 million at turnover of nearly EUR 9 million. Therefore, the indications from the market are that there is no substantial change in control and both before and now the lender can actually dictate basic choices of the company. Unlike most transactions in the sector, where smaller players are swallowed by larger operators, the buyer is a completely new company established on February 21, while transaction happened on March 14. This is also an indication that the bank has acquired its debtor.
Source: Capital (03.04.2017)

Fibank is looking for a new investor The third largest Bulgarian investment bank First Investment Bank (FIB) is looking for strategic partnerships or new key investors. This became clear from the announcement of the bank on the Bulgarian Stock Exchange - Sofia for taking remedial actions after the quality review of the assets. The information indicates that the bank has hired Citigroup Global Markets as a financial advisor in choosing between several development opportunities for the bank. All of them, however, demand for a new shareholder, with an option to change the majority owner. There is no deadline mentioned in the announcement, but Citigroup is likely to collect offers this year. The options include "strategic partnerships and/or consolidation", "attracting new key investors", "issuing new capital to finance the future growth of the bank". Citigroup is hired as a consultant, but may also have taken on the responsibility for identifying and negotiating with specific interested investors. One of the measures prescribed by the Central Bank after the asset check (AQR) and the stress tests last year was a capital increase that has not yet been undertaken. The forthcoming general meeting is expected to decide on the capitalization of Fibank's profits for 2016 - BGN 90.2 million, and for 2017.
Source: Capital (02.05.2017)

Bulgaria's Fibank appoints new CEO to pursue strategic options Bulgaria's First Investment Bank [BUL:5F4] said on Friday it has appointed Nedelcho Nedelchev as its new chief executive officer (CEO) in line with the strategic plan for the bank's development. "Nedelchev will have a leading role in discussing the strategic options for the bank under the plan with Citigroup Global Markets," First Investment Bank (Fibank) said in a statement. Last week, Fibank said it has hired Citigroup Global Markets as financial advisor in exploring strategic options for the bank's development, which might include strategic partnerships and/or consolidation, a capital increase via a new share issue, or attracting new key investors. Nedelchev has also become member of the bank's board of directors. Vassil Hristov, the current CEO of Fibank, will continue his career with the bank as chief retail banking officer. Fibank is Bulgaria's third largest lender by assets, which stood at 8.8 billion levs ($4.9 billion/4.5 billion euro) as of March 31, according to Bulgarian National Bank data. Its shares were trading 1.5% lower at 5.900 levs as of 15:40 CET on the Bulgarian Stock Exchange. A total of 1,015 Fibank shares had changed hands by that hour.
Source: Monitor (09.05.2017)

Ìoody's Investors Service said on Tuesday it has assigned first time B1 long-term local and foreign currency deposit ratings to Bulgaria's First Investment Bank (Fibank), àccording to their website. "The deposit ratings reflect the bank's b2 standalone Baseline Credit Assessment (BCA) and one notch of uplift reflecting Moody's expectation of a Moderate likelihood of support from the government of Bulgaria (Baa2, stable) in case of need," the rating agency said in a statement. The outlook on the long-term deposit ratings is stable. The moderate support assumption reflects Fibank's systemic significance as the third largest bank in Bulgaria. FiBank has strong income generation as indicated by its 3.6% ratio of pre-provision income to risk weighted assets as of December 2016 and 0.8% return on assets. Income streams are relatively diversified and Moody's expects the bank's efficiency to remain broadly in line with peers. The rating agency also expects the bank's credit costs to stabilise at around 1.5%. The rating agency expects FiBank to maintain its deposit-based funding structure and sizeable liquidity buffers. FiBank is funded by, predominantly retail, deposits as indicated by its ratio of average due to customers' to average funding which was 96% as of December 2016. The bank's ratio of liquid assets to tangible banking assets was a sizeable 28% as of December 2016. Moody's expects that the bank's asset quality will improve gradually driven by write offs and the improving operating environment which supports the bank's restructuring efforts. Nevertheless, FiBank has a high level of problem loans, with the ratio of NPE's to gross loans at 24.4% as of December 2016 and the ratio of 90 days or more past due loans at 17.5%. The bank also has a large portfolio of foreclosed properties accounting for around 12% of total assets which exposes it to the risk of facing a loss when it sells this real estate. In Moody's view, despite significant improvement with the additional independent director elected on its board in 2015 and the strengthening of the risk, audit and compliance functions, FiBank's corporate governance practices are in some areas still evolving and weaker than global best practice. Given the long-standing relationship of the majority of the independent board directors with the bank, the rating agency believes that the supervisory board's decisions may continue to be influenced by the interests of the bank's two major shareholders with 42.5% stake each. Additionally, in Moody's opinion, the concentration of ownership of the bank in the hands of two individuals gives rise to some key-man risk issues. FiBank operates in Bulgaria, which is an EU-member country. As such, under the EU Bank Resolution and Recovery Directive it is subject to an Operation Resolution Regime, similar to other EU countries. As a result, and in accordance with Moody's Banks' methodology, the rating agency has applied its advanced LGF analysis, to assess the risks faced by the different debt and deposit classes across the liability structure should the bank enter resolution. The rating agency's analysis assumes residual tangible common equity of 3% and losses post-failure of 8% of tangible banking assets, 10% junior deposits and a 25% run-off in "junior" wholesale deposits, and a 5% run-off in preferred deposits. These are in line with Moody's standard assumptions. The rating agency takes into consideration full 'depositor preference', whereby junior deposits are preferred over senior debt creditors, in accordance with a law decree introducing full depositor preference in Bulgaria that became enforceable in August 2015. The stable outlook assigned to FiBank's deposit ratings reflects Moody's expectation that despite improvement in asset quality, the bank's solvency over the next 12 to 18 months will continue to be threatened by its large stock of non-performing assets on its balance sheet limiting upside pressure. Ìoody's Investors Service said on Tuesday it has assigned first time B1 long-term local and foreign currency deposit ratings to Bulgaria's First Investment Bank (Fibank), àccording to their website. "The deposit ratings reflect the bank's b2 standalone Baseline Credit Assessment (BCA) and one notch of uplift reflecting Moody's expectation of a Moderate likelihood of support from the government of Bulgaria (Baa2, stable) in case of need," the rating agency said in a statement. The outlook on the long-term deposit ratings is stable. The moderate support assumption reflects Fibank's systemic significance as the third largest bank in Bulgaria. FiBank has strong income generation as indicated by its 3.6% ratio of pre-provision income to risk weighted assets as of December 2016 and 0.8% return on assets. Income streams are relatively diversified and Moody's expects the bank's efficiency to remain broadly in line with peers. The rating agency also expects the bank's credit costs to stabilise at around 1.5%. The rating agency expects FiBank to maintain its deposit-based funding structure and sizeable liquidity buffers. FiBank is funded by, predominantly retail, deposits as indicated by its ratio of average due to customers' to average funding which was 96% as of December 2016. The bank's ratio of liquid assets to tangible banking assets was a sizeable 28% as of December 2016. Moody's expects that the bank's asset quality will improve gradually driven by write offs and the improving operating environment which supports the bank's restructuring efforts. Nevertheless, FiBank has a high level of problem loans, with the ratio of NPE's to gross loans at 24.4% as of December 2016 and the ratio of 90 days or more past due loans at 17.5%. The bank also has a large portfolio of foreclosed properties accounting for around 12% of total assets which exposes it to the risk of facing a loss when it sells this real estate. In Moody's view, despite significant improvement with the additional independent director elected on its board in 2015 and the strengthening of the risk, audit and compliance functions, FiBank's corporate governance practices are in some areas still evolving and weaker than global best practice. Given the long-standing relationship of the majority of the independent board directors with the bank, the rating agency believes that the supervisory board's decisions may continue to be influenced by the interests of the bank's two major shareholders with 42.5% stake each. Additionally, in Moody's opinion, the concentration of ownership of the bank in the hands of two individuals gives rise to some key-man risk issues. FiBank operates in Bulgaria, which is an EU-member country. As such, under the EU Bank Resolution and Recovery Directive it is subject to an Operation Resolution Regime, similar to other EU countries. As a result, and in accordance with Moody's Banks' methodology, the rating agency has applied its advanced LGF analysis, to assess the risks faced by the different debt and deposit classes across the liability structure should the bank enter resolution. The rating agency's analysis assumes residual tangible common equity of 3% and losses post-failure of 8% of tangible banking assets, 10% junior deposits and a 25% run-off in "junior" wholesale deposits, and a 5% run-off in preferred deposits. These are in line with Moody's standard assumptions. The rating agency takes into consideration full 'depositor preference', whereby junior deposits are preferred over senior debt creditors, in accordance with a law decree introducing full depositor preference in Bulgaria that became enforceable in August 2015. The stable outlook assigned to FiBank's deposit ratings reflects Moody's expectation that despite improvement in asset quality, the bank's solvency over the next 12 to 18 months will continue to be threatened by its large stock of non-performing assets on its balance sheet limiting upside pressure.
Source: 24 chasa (06.07.2017)

During the first half of 2017, the banking sector saw a profit of BGN 660 million. It was BGN 113 million (14.6%) lower than this time last year. The credit portfolio of banks increased in the second quarter and so did investments in securities. A key source of financing were available resources in the form of cash balances at central banks and increased deposits. Despite the decrease in liquid assets during the second quarter, the liquid assets ratio remained high, at 36.92%. In the structure of liquid assets, the item cash and cash balances with the BNB as of end-June had a share of 51.8% (against 54.2% as of end-March). The banking system's assets in April - June 2017 grew by 0.1% to BGN 93 billion. Cash, cash balances at central banks and other demand deposits decreased by BGN 1.6 billion (8.4%) and its share in the total assets decreased to 18.6%. At the same time, the share of the balance sheet total of loans and advances increased to 61.8%. During the quarter, the total equity in the balance sheet decreased by BGN 208 million (1.7%) to BGN 12 billion as of 30 June 2017.
Source: Capital (01.08.2017)

Bulgarian banks show interest in financing projects of SMEs under Juncker Plan State-owned Bulgarian Development Bank (BDB) said nine offers have been submitted by local commercial banks for its EUR 300 million programme for providing financing to small and medium-sized businesses under the European Commission's investment plan for Europe. The offers were submitted by Allianz Bank Bulgaria, Bulgarian-American Credit Bank, Piraeus Bank Bulgaria, Investbank, Municipal bank, First Investment bank, D Commerce Bank, Eurobank Bulgaria, as well as a joint offer by UBB and CIBank. The financing of the new programme is jointly provided by BDB and EIB as part of the EU's Investment Plan for Europe. Under the programme BDB will provide up to EUR 50 million of financing to each eligible commercial bank for on-lending to small and medium-sized entreprises (SMEs) and it is prepared to assume up to 100% of the credit risk. Companies will be able to apply for loans of between BGN 3 million and BGN 24 million, for investment or operational financing purposes, excluding refinancing of existing loans.
Source: Banker (18.08.2017)

Bulgarian Development Bank Approves All Partner Banks under Juncker Plan Scheme The Bulgarian Development Bank (BDB) has approved all ten partner banks in a new lending scheme under the Juncker Plan. These are Alianz Bank, the Bulgarian-American Credit Bank, DSK, Pireos, Investbank, United Bulgarian Bank and CIBank, Municipal Bank,First Investment Bank, Commercial Bank and Eurobank. The partner banks are yet to be vetted by the European Investment Bank. The money under the scheme for the Bulgarian business have been secured by BDB and EIB within the Investment Plan for Europe. The scheme is aimed at small, middle and intermediate companies with up to 3,00 staff which are among the existing clients of the banks. Banks will extend investment, project and turnover financing between BGN 3 and 24 million and the BDB will provide loan cover at 100%.
Source: Other (04.10.2017)

Alcomet and Chimimport ranked among the top three in the growth of market capitalization in Southeastern Europe Two Bulgarian public companies fall among the three companies with the highest growth in market capitalization across Southeast Europe. These are Chimimport AD and Alcomet AD, whose market ratings doubled within 12 months, shows the annual TOP 100 ranking of the largest stockbrokers of SenseNews. Chimimport registered a growth of 93.6%, firing it from last year's 85th place to the top 50s - to 48th place. Alcomet AD, for its part, was ranked 67th for the first time thanks to its 117.07% growth. Third in growth is Slovenian ѳnkàrnà Ñåljå with 113.19%. With a market capitalization of EUR 204.6 million, Chimimport almost catches the Bulgarian leader Sopharma AD, whose market valuation amounts to EUR 205.4 million. One reason for the equalization is that the pharmaceutical company loses more than 10% over the past year. Among the 50 largest stock-traded companies in Southeastern Europe is Tchaikapharma High Quality Drugs AD, which has a 45.94% growth and a total capitalization of EUR 201.7 million.
Source: money.bg (10.10.2017)

KORADO-Bulgaria was accepted into the premium segment of the stock exchange KORADO-Bulgaria AD was accepted yesterday in the segment Premum on the Bulgarian Stock Exchange (BSE). At the beginning of October the radiator manufacturing company signed a market-making contract with the investment intermediary Elana Trading AD. Only five other companies - Chimimport AD, CB Central Cooperative Bank AD, Sopharma AD, First Investment Bank AD and Monbat AD are currently in the Premium segment. Among the other requirements the company has responded to are applying corporate governance principles to publish regular business information, including in English, at least five completed financial years, at least two of which are profitable.
Source: money.bg (16.11.2017)

Sofia South Ring Mall consolidates syndicated loan into debt to Postbank Sofia South Ring Mall company, owner of Sofia Ring Mall, said on Tuesday its debt on a syndicated loan with an initial value of 88 million levs ($53.3 million/45 million euro) has been consolidatd into debt owned solely by Bulgaria's Postbank. "Sofia South Ring Mall and Postbank announce that the bank has become the sole owner of the syndicated loan provided to the company in 2014," the operator of the mall said in a statement. According to Asen Yagodin, executive director at Postbank, the transaction provides competitive conditions on the credit as well as an extended repayment period and additional financing. "In addition to this key transaction, the year 2017 brought us a further increase in traffic by 12% compared to 26% growth in 2016," Dimitris Papoulis, CEO of Sofia South Ring Mall, said. Sofia Ring Mall is a 130 million euro ($163 million) investment project of Greek companies Fourlis Group, which trades and produces quality durable goods, and Danaos Group, which deals in shipping, information technology, construction, banking and financial services. The shopping centre located at the Sofia ring road spreads on a gross area of 105,000 sq m and has about 200 stores. Development of the mall started in September 2011 and was conducted by local construction company Glavbolgarstroy. Bulgaria's Postbank is a unit of Greece’s Eurobank EFG.
Source: Capital (06.12.2017)

Bulgarian insurers' assets grow 14.8% y/y in Jan-Sept The assets managed by Bulgarian insurance companies increased to 7.47 billion levs ($4.47 bilion/3.7 billion euro) at the end of September, up 14.8% year-on-year, the country's central bank said on Friday. The assets of life insurance companies grew by 8.4% on the year to 1.98 billion levs as of end-September, while the assets managed by general insurance companies increased by 17.3% to 5.49 billion levs, the Bulgarian National Bank (BNB) said in a quarterly insurance sector report. Compared to the end of June, the insurance companies' total assets were 2.6% higher at the end of September, with life insurers' assets up 2.4% and general insurers' assets up 2.7%. At the end of September, the assets of life insurance companies accounted for 26.5% of the total assets of Bulgarian insurers, down from 28.1% a year earlier. The assets of general insurance companies made up 73.5% of all assets, up from 71.9% at end-September 2016. The share of securities other than shares in the insurance companies' assets fell to 48.2% from 52% at end-September 2016, the share of deposits decreased to 9.5% from 11.6%, and the share of claims from insurance operations declined to 9.7% from 9.9%. Assets invested in other EU member states grew by 27.5% on the year to reach 3.66 billion levs at end-September. Their share increased to 49% of total assets, up from 44.1%.
Source: Capital (11.12.2017)